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When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.

Atlantic Computer, a leading player in the high-end server market, has detected a marketplace opportunity in the basic server segment. They have developed a new server, the Tronn, to meet the needs of this segment. In addition, they have created a software tool, called the "Performance Enhancing Server Accelerator," or PESA, that allows the Tronn to perform up to four times faster than its standard speed. The central question revolves around how to price the Tronn and PESA. Although cost-plus, competition-based, and status-quo pricing are the most common means by which firms establish prices for their offerings, these approaches may prevent firms from fully realizing the benefits that are due to them. Provides an opportunity to optimize value capture for the firm by utilizing value-in-use pricing (i.e., examining the value that a firm's offering creates for the customer, and using the savings generated as the basis for developing prices). Also allows for the exploration of the challenges surrounding the implementation of a value-in-use pricing strategy. These include the reactions of competitors, customers, and stakeholders within the firm.

learning objective:

To be used during the pricing module of the core MBA Marketing course or in an elective course on pricing. To allow instructors to contrast a customer-focused approach to pricing (value-in-use) with company-centric (cost-plus), competitor-based (competition-based), and status-quo approaches. To provide students an opportunity to calculate the price of a new offering utilizing the traditional approaches to pricing as well as value-in-use pricing, and then evaluate the respective approaches to see which yields optimal value capture for the firm. Also to allow students to take into consideration how other important stakeholders (competitors, customers, internal mangers, and the sales force) can potentially impact the implementation of pricing strategy.

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When students have the English-language PDF of this Brief Case in a coursepack, they will also have the option to purchase an audio version.

This case provides students with an opportunity to become familiar with some major strategic issues that firms face when formulating and implementing a sales promotion, including: cannibalization, brand equity erosion, forward-buying, pass-through, and consumer stockpiling. It also provides them an opportunity to utilize retail scanner purchase data in order to evaluate the historical performance of sales promotions. Based on calculating top-line revenue, marketing margin, and return on marketing investment (ROMI) for prior promotions, students can recommend the most financially and strategically defensible initiative from a choice of several competing sales promotions. The setting is the frozen foods category in the consumer packaged goods industry.

learning objective:

• To provide students with a greater appreciation of how such strategic issues as cannibalization, brand equity erosion, forward-buying, pass-through, and consumer stockpiling can factor into decision-making pertaining to sales promotion activity. • To provide students with an understanding of the multi-disciplinary nature of brand management. • To provide students with some insight into how annual brand plans and sales promotions are developed and implemented. • To provide students with exposure to financial analytics, including return on marketing investment (ROMI), commonly utilized by brand managers at consumer packaged goods firms.

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